DPO: Difference between revisions
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1. | |||
Days Payables Outstanding. | Days Payables Outstanding. | ||
A working capital management ratio calculated by dividing accounts payable outstanding at the end of a time period by the average daily credit purchases for the period. | A working capital management ratio calculated by dividing accounts payable outstanding at the end of a time period by the average daily credit purchases for the period. | ||
For example: a company has an average of £50,000 of payables over a year in which the cost of goods sold was £400,000. | |||
The DPO is: | |||
50,000 / 400,000 * 365 = 45.6 days | |||
A higher number is generally perceived as better, but a business needs to maintain the goodwill of its suppliers and shorter payment terms may therefore be necessary. | |||
Also known as creditor days. | Also known as creditor days. | ||
2. | |||
Data Protection Officer. | |||
== See also == | == See also == | ||
* [[Accounts payable management]] | |||
* [[Creditors]] | * [[Creditors]] | ||
* [[ | * [[Data Protection Officer]] | ||
* [[Days inventory outstanding]] | |||
* [[Days sales outstanding]] | |||
* [[General Data Protection Regulation]] | |||
* [[Payables management]] | * [[Payables management]] | ||
[[Category:Context_of_treasury]] | |||
[[Category:Corporate_financial_management]] | |||
[[Category:Cash_management]] | [[Category:Cash_management]] | ||
[[Category:Technology]] | |||
Latest revision as of 18:26, 2 June 2020
1.
Days Payables Outstanding.
A working capital management ratio calculated by dividing accounts payable outstanding at the end of a time period by the average daily credit purchases for the period.
For example: a company has an average of £50,000 of payables over a year in which the cost of goods sold was £400,000.
The DPO is:
50,000 / 400,000 * 365 = 45.6 days
A higher number is generally perceived as better, but a business needs to maintain the goodwill of its suppliers and shorter payment terms may therefore be necessary.
Also known as creditor days.
2.
Data Protection Officer.
